“Dammam is the capital of the Eastern Province, where major suppliers of the oil and gas industry are in,” said Mohammed Maher, director of sales and marketing, Sheraton Dammam Hotel & Convention Centre, further explaining that the city is home to various offices which contribute to the business of the hotel.
Being the regional centre of government, industry and commerce, it is only natural that Dammam’s hospitality scene thrives on the corporate travel market.
“This segment has a significant importance and impact on the business stability and represents a big margin of the business mix,” confirmed Fadi Mheisen, hotel manager, Park Inn by Radisson Dammam.
Maher was more specific, saying, “Corporate business represents between 50 – 60 percent of the total business mix of the hotels within the Eastern Province.”
His estimates are mirrored by Samir Khairallah, director of marketing and sales, Golden Tulip Al Hamra, who attributed almost 80 percent of the property’s total yearly revenue to corporate demand.
When it comes to meeting the needs and expectations of the core market, Dammam’s hoteliers know their game well and make sure to tick all the boxes.
“We consider [those clients] as our expert guests since they visit many hotels and travel to many countries, experiencing different styles of hospitality.
[…] We take them as an opportunity to learn about their experiences and enhance our efforts to exceed their expectations,” Mheisen explained.
Strong dependence on a single market can prove to be challenging to occupancy and room rates, as it was shown by the overall business performance of the city’s hotel industry in 2015.
The average room rate was pushed down by the lower corporate demand from the oil sector, as well as by the decline in Euro exchange rates which resulted in more outbound trips from the Kingdom, according to Colliers International. In addition, driven by cost-cutting efforts, the demand for accommodation from the corporate segment shifted from five- to four-star properties, forcing the top-tier sector’s room prices to drop.
A WIDENING AIM
Due to its seaside location and a myriad of shopping and leisure opportunities, it comes as no surprise that this bustling hub also lures other types of travellers, with highly varied needs.
Sheraton Dammam Hotel & Convention Centre is popular among event organisers and attendees boasting a 1,500m2 conference and exhibition space, and the property also welcomes families and leisure travellers especially from Riyadh, looking for a weekend city break, as Maher revealed.
“Since the hotel is located at the Corniche and close to the shopping and leisure facilities in Dammam, we welcome many families during weekends and holidays, and enjoy serving them,” Mheisen shared the experience of Park Inn by Radisson Dammam.
Families are also a lucrative market for Golden Tulip Al Hamra, especially during the summer season and school vacation periods, according to Khairallah, who also pinpointed local sports teams and federations as a good market for the property, in addition to event-goers and organisers.
Looking ahead, it is clear that any further drop in oil prices will mean more business for establishments with more affordable room rates, as it is highlighted by Colliers International.
But Dammam’s seasoned hospitality veterans seem poised to weather the storm, relying on the convenient location, service and alternative market opportunities.
